2024, the cement industry encountered unprecedented challenges, known as the "winter once in 30 years". Faced with the decline in demand, some enterprises lack the strength to blindly implement radical market strategies, resulting in frequent price wars and damage to the overall interests of the industry. Faced with the dual pressures of market and environment, cement enterprises can only create brilliance in the next rising period of the industry by improving their resilience and crossing the cycle. What exactly should I do? Sponsored by OCC (Yangtze River Cement Enterprise Alliance), the "Yangtze River Basin Cement Anti-involution Forum" put forward three major proposals:
First, rationally understand the market situation and jointly build the cornerstone
for the healthy and orderly development of the industry. The cement industry is experiencing unprecedented market challenges and structural transformation. Insufficient demand is the general trend of the economic cycle, which is irreversible in the short term. The disorderly competition and mutual involution among enterprises will lead to the loss of the whole industry, which is not conducive to the sustainable and healthy development of the industry. The healthy development of the industry requires us to advocate the concept of fair competition and win-win cooperation, not only to actively respond, but also to maintain strategic strength and firm confidence in development.
2. Adjusting the balance
between production and sales In the face of the current situation of cement industry reduction under the downward situation of the domestic cycle, enterprises need to take a rational view and organize production activities according to market demand. Take the initiative to control the quantity from both ends of production and marketing, reduce the quantity with the trend, do not fight price war, do not compete for share. By strengthening supply-side management and control, we can achieve "quantity reduction without profit reduction" or "quantity reduction with profit increase", pursue quality management and effective development, reduce production and consumption intensity, and reduce ineffective supply.
3. Resolutely implementing the production mechanism
on demand and peak staggering production is the most effective way to promote the structural reform of the supply side and improve the serious contradiction of excess capacity in the industry. The whole industry needs to strictly implement on-demand production, scientifically formulate production plans, consciously and actively implement them, achieve precise, rigid and normalized peak staggering production, reduce resource consumption, reduce ineffective supply, and maintain a dynamic balance between supply and demand.
These three initiatives are not only an important grasp of anti-involution in the cement industry, but also a key path to promote the healthy, orderly and sustainable development of the industry.
Anti-involution is not only a countermeasure to the current predicament, but also the only way for the long-term development of the cement industry. It means that the industry should withdraw from the quagmire of disorderly competition and move towards an orderly, healthy and sustainable development path. Cement enterprises are required to strengthen industry self-discipline, advocate the concept of fair competition and win-win cooperation, actively respond, maintain strategic strength and firm confidence in development. As the basic industry of the national economy, the healthy development of the
cement industry plays an irreplaceable role in the national infrastructure construction, the process of urbanization, and even the stable growth of the whole economy. In this journey of anti-involution, every cement enterprise is a participant. We need to take practical actions to practice the concept of anti-involution, put an end to vicious competition, truly stand in the position of the industry decision-making action, adhere to innovation-driven, adhere to long-term doctrine, and jointly build a healthy, orderly and sustainable industry development environment.
